The power sector regulator in Uttar Pradesh, the Uttar Pradesh Electricity Regulatory Commission, has approved several steps that can not just strengthen the financial position of state utilities but also increase opportunities for companies in the transmission and distribution (T&D) EPC business. EPC is engineering, procurement and construction.

Last week, the regulator allowed an average tariff hike of around 13%. Importantly it nudged consumers who pay a flat charge per month, to move to metering and left industry tariffs unchanged. “Unmetered rural customers currently pay a flat fixed rental charge of Rs180/month. This has been hiked to Rs300/month and they have been asked to put up meters by March 18. If they fail to meter by March 18, the fixed charge will be Rs400/month,” Dolat Capital Market Pvt. Ltd said in a note.

Further as Elara Capital (India) Pvt. Ltd points out, the regulator approved capital expenditure of Rs20,000 crore for fiscal years 2018 and 2020 (FY18-20) in the transmission sector, more than double the amount invested in FY15-17. Of this 81% or Rs16,200 crore is for new projects, said Elara Capital. Read More…